BMI View: Significant changes are on the cards in the Kuwaiti power sector as the government attempts tospur investment into the country's ageing infrastructure. The government has earmarked USD9.9bn forinfrastructure projects including power and progress is being made on greenfield thermal and renewableprojects. The electricity and water ministry is aiming to approximately double generating and desalinationcapacity by 2017 to cater to growing demand and an estimated USD2.5bn is expected to be invested overthe medium term.

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Kuwait's finance ministry has given approval for building a series of power plants, desalination facilitiesand other infrastructure projects totalling about KWD3bn (USD9.9bn). The planned projects will boostcapacity by nearly 3,580MW besides waste treatment and developments for the education ministry. Theprojects include construction of a second phase of the gas-fired Al-Zour North power and desalinatedwater plant that has an initial capacity of 1,800MW, first phase of the Khairan power plant with1,500MW of capacity and the Al Abdaliyah power plant with a capacity of 280MW. The ministry has notset a timeline for the projects, except for the sewage plant that will start by 2020. It has also not providedany information regarding funding beyond stating 50% of the funds will be raised through stock marketofferings.